Rand Merchant Investment Holdings (RMI), which invests in the financial services sector, reported a 12% rise in normalised earnings from continuing operations to 121.3c in the six months to end-December from the year-earlier period. The portfolio of companies RMI invests in include Discovery, MMI, Outsurance and RMB Structured Insurance. Discovery’s 3% increase in normalised earnings was driven by the performance of its three established South African businesses — Discovery Health, Discovery Life and Discovery Invest — and VitalityHealth in the UK. MMI recorded a 5% decrease in normalised earnings, affected by lower health administration revenue and the effect of weak investment markets on asset-based fee income. Normalised earnings from Outsurance increased by 23%, driven by a significant improvement in the cost-to-income ratio across the group. The market value of its listed investments dropped 8% to R28.00bn while the implied value of unlisted investments rose 16% to R33.25bn.
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